Real Estate

Why Markham RE is so expensive?

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  • Sep 20th, 2020 10:21 pm
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[OP]
Jr. Member
Jul 16, 2020
138 posts
25 upvotes

Why Markham RE is so expensive?

that's a question everyon knows, but why?
46 replies
Deal Addict
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Aug 21, 2009
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What? RE is expensive everywhere in the GTA.
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Jan 12, 2017
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Combination of things....

The houses are huge. More house means higher construction costs. It also means you can fit more income generating people in one house. Multiple generations is not uncommon.

Consistency of low neighborhood age. Comparable new builds in Toronto are much more expensive, but neighborhood averages are pulled down by all the old homes. Also, ghetto/neglected homes pull down values - not nearly as common in Markham. The same goes for community amenities, roads, libraries, etc.

Relatively recent construction means that owners/residents paid more for their home (in comparison to Toronto where many residents bought at affordable levels). This means average incomes in Markham are usually higher, crime trends to be lower, schools tend to score better, all which drive higher prices.

Demographics - Markham attracts wealthier foreign buyers, as well as groups that value home ownership.

Foreign ownership - when you're buying sight unseen based on an agent or from pictures, prices tend to be higher.

High vacancy rates - this means city services are being used less, resulting in lower property taxes.

More new builds means a higher benchmark for resale, making high prices still look like deals in comparison.
Onlyuo wrote: that's a question everyon knows, but why?
[OP]
Jr. Member
Jul 16, 2020
138 posts
25 upvotes
Lovable wrote: What? RE is expensive everywhere in the GTA.
ya but markham does not have subway, just a few go train stations and viva runs every 30-45 mins, living in markham needs a car

it promote itself as a tech city or some sort, with york university coming along in a few years (Small campus). Traffic jam,
[OP]
Jr. Member
Jul 16, 2020
138 posts
25 upvotes
Chickennbeans wrote: Combination of things....

The houses are huge. More house means higher construction costs. It also means you can fit more income generating people in one house. Multiple generations is not uncommon.

Consistency of low neighborhood age. Comparable new builds in Toronto are much more expensive, but neighborhood averages are pulled down by all the old homes. Also, ghetto/neglected homes pull down values - not nearly as common in Markham. The same goes for community amenities, roads, libraries, etc.

Relatively recent construction means that owners/residents paid more for their home (in comparison to Toronto where many residents bought at affordable levels). This means average incomes in Markham are usually higher, crime trends to be lower, schools tend to score better, all which drive higher prices.

Demographics - Markham attracts wealthier foreign buyers, as well as groups that value home ownership.

Foreign ownership - when you're buying sight unseen based on an agent or from pictures, prices tend to be higher.

High vacancy rates - this means city services are being used less, resulting in lower property taxes.

More new builds means a higher benchmark for resale, making high prices still look like deals in comparison.
Some people dont want to live with students in a condo when yorku markham campus were built. they may move away

Would richmond hill prices higher than markham in a few years? with the subway build and more house coming into completion?

IN terms of convenience , richmond hill would be better with subway (few years from now, planned), go train station, viva.
Deal Addict
Jan 12, 2017
1407 posts
714 upvotes
I doubt people will move away from Markham because of the university. The immediate area is medium density/low rise multi. Prices might even increase. Student rooming house are highly profitable.

I wouldn't hold your breath for the Subway. From recent announcements, it's pretty clear that the only way it will happen is if the feds pay for York Region's share of the costs. The only other option is for York Region to take on another $1 to 1.6 billion dollars of debt since they haven't set aside a penny for their share of construction costs. They're already drowning in debt as it is a the result is much higher taxes, whether insanedevelopment charges or property taxes. They basically need $1k from every man, woman and child that lives in York Region to be able to pay for their share of the subway.

Look at values from a long term perspective. Values now are super volatile and don't really reflect inherent value. Areas where prices are somewhat resilient did not take a hit post 2017. Buy in those locations.
Onlyuo wrote: Some people dont want to live with students in a condo when yorku markham campus were built. they may move away

Would richmond hill prices higher than markham in a few years? with the subway build and more house coming into completion?

IN terms of convenience , richmond hill would be better with subway (few years from now, planned), go train station, viva.
[OP]
Jr. Member
Jul 16, 2020
138 posts
25 upvotes
I understand what you meant.

Will subway ever comes to downtown Markham?
Sr. Member
Jul 7, 2019
688 posts
538 upvotes
Onlyuo wrote: Some people dont want to live with students in a condo when yorku markham campus were built. they may move away

Would richmond hill prices higher than markham in a few years? with the subway build and more house coming into completion?

IN terms of convenience , richmond hill would be better with subway (few years from now, planned), go train station, viva.
I thought Richmond Hill prices were already higher.
Deal Fanatic
Mar 27, 2004
5981 posts
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Toronto
Onlyuo wrote: ya but markham does not have subway, just a few go train stations and viva runs every 30-45 mins, living in markham needs a car

it promote itself as a tech city or some sort, with york university coming along in a few years (Small campus). Traffic jam,
subway is not the driving factor of prices in every area.

prices are high in oakville also.

the suburbs is built for cars so subway is not relevant.
Full-time Realtor
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Jan 12, 2017
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They changed employment land to residential. All they need now is to get Del Duca in so they can build on protected greenbelt.

negotiater wrote: Markham ran out of land a long time ago.
Deal Addict
Mar 2, 2017
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Toronto/Markham
Some of the best public schools in the country, low crime, high household incomes, great municipal/private amenities, low property taxes. The list is long.

Makes it one of the best places to raise a family.
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RichmondCA wrote: Some of the best public schools in the country, low crime, high household incomes, great municipal/private amenities, low property taxes. The list is long.

Makes it one of the best places to raise a family.
thats exactly right

Trudeau. bur oak ss. markham district. Unionville. Middlefield. etc. some of the top hs in Ontario are all in markham.
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Mar 2, 2017
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This isn't going to sit well with most, but 407 is also a massive advantage of living in Markham. It caters to upper middle class or those who can afford 407, but being able to get to Pearson in less than 20 minutes in rush hour was awesome for me when I lived that corporate life and had to travel a lot.
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Member
Dec 12, 2011
203 posts
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Toronto
Yeah I didnt think of that but my best friend is a real estate agent in Markham and he takes nothing but the 407. Anyways, prices are high because almost all of the houses are nice in Markham. Nice, bigger, newer houses on good sized lots. And the most underrated answer as to why prices are high, the Chinese.
Newbie
Apr 19, 2020
7 posts
Would you say Markham is the most desirable city in York Region? Or even Ontario...
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Mar 27, 2004
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Toronto
Sweatsuit wrote: Would you say Markham is the most desirable city in York Region? Or even Ontario...
For certain demographic and ethnicity yes.

Markham is like 60% chinese. They have the money. There are so many chinese restaurants/shops/services in Markham . It only makes sense.
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Oct 16, 2008
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Maple
Onlyuo wrote: that's a question everyon knows, but why?
Supplies and demands. More demands in this area.
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Jun 3, 2019
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GTA
Onlyuo wrote: that's a question everyon knows, but why?
You could say that just about anywhere in the GTA. But for a macroeconomics review of why housing in GTA is expensive and how the government (mainly federal and provincial) policies are the main reason for this. Public transit, highway infrastructure, and schools only determines where buyers will pay a premium for living there. The reason why housing has gotten so expensive is because of immigration (federal) and land use (provincial) planning.

Last year we allowed over 300k+ net new immigrants into this country, which is a good thing because the world's birth rates are declining and that is the only way to sustain a country's population and social programs. Look at Japan's aging population which is also shrinking in total numbers. Over 60% of the new immigrants came to the GTA which means 200K+, because we are the most populous city and also very diverse. Last year all home builders (condos, semis, detached, multi) built 30k+ new units. Those 200k+ new people need to live somewhere, either with family, renting, or buying. Then there are the younger generation that are leaving the family nest, domestic and international investors look to add to our red hot market. All the newly built units and re-sale units are not enough to meet demand. Simple supply and demand.

The provincial government's policy in regards to green space with the Oak Ridges Moraine and the Niagara Escarpment has essentially confined residential and commercial land use of GTA to a 'Manhattan effect'. This has created less outward land development and more upward development (like condos and other multi-residential units). This is Ontario's 'Places to Grow' planning.

And finally with interest rates so low it is no wonder why our housing will see a boom at least till 2040, when immigration will re-visit their policies about letting more or less people in. There will be ups and downs for sure as government tries to cool the market but whatever they do it will bounce back and then some.
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Onlyuo wrote: Some people dont want to live with students in a condo when yorku markham campus were built. they may move away

Would richmond hill prices higher than markham in a few years? with the subway build and more house coming into completion?

IN terms of convenience , richmond hill would be better with subway (few years from now, planned), go train station, viva.
I doubt the Yonge subway extension will be done in two decades. if you plan to have a baby she may not even see the subway before she graduates from university.

The North South traffic already sucks for Richmond Hill. Having a subway will not benefit lots of people, those who lives North will probably just keep using Go train if they need to commute downtown.
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